Real Estate Investing
With the lucrative and booming real estate industry in Canada, investing in a property is a wise decision and strategy. Whether you purchase a residential property or expand your commercial space, investing in a real estate property is a valuable asset. Aside from gaining guaranteed long-term benefits, you can also earn more by treating it as a source of passive income.
If you are keen in expanding your investment portfolio by purchasing a real estate property, you should understand first how it works. You have to be informed of the property taxes and other rules and regulations that comes with it. And once you are well-versed in that aspect, you can now determine your strategies to acquire your first real estate investment.
Using RRSP for down payment on investment property
Yes, it’s possible! Not many Canadians know that they can utilize their Registered Retirement Savings Plans (RRSP) to invest in a real estate property. However, one must strategize first because investing in a property using RRSP can only be done indirectly. There are three most popular methods to put your RRSP into real estate.
Real Estate Investment Trusts
Since real estate investment trusts (REIT) are open to public, you can invest freely invest on rental properties without you being totally involved in its management. Apart from that, you can purchase multiple rental properties in REITs to maximize your earnings.
Mortgage Investment Corporations
If you prefer investing in a short period of time, you may opt to place your RRSP funds in Mortgage Investment Corporations (MIC). MICs are institutions that Canadians turn to if they are in need of cash but have been rejected by banks and other lending institutions. But, how will you invest in MICs? By placing your RRSP funds in MICs, they can use it as a loan for borrowers. You can gain a return in as fast as six months to a year.
Lending out your RRSP to another real estate investor
If you know someone who is looking to invest in a real estate property, you can create an agreement with them. Lend out your RRSP funds to them for at least 5% interest. Specify in your agreement the payment options and the consequences should the borrower default on the loan.
Real Estate Investing with no money down
If you have an outstanding credit report, stable source of income, and looking to purchase a real estate property, you can go into real estate investing no money down. This means that the seller will not scrutinize the source of your money to purchase the property. This is because most sellers would consider you already as their buyer as long as you agree to a price and fixed interest rate.
More details on real estate investment in Canada
Real estate investment should be taken seriously. You can contact a mortgage broker to explain and discuss to you the options that you have. In fact, just call Faizal Garasia. One of the best mortgage broker in Toronto who can do that for you.
Faizal Garasia, CSC, CPH, FP1, LLQP, PFSA, RP
Mortgage Agent, Commercial Mortgage Agent, Leasing Agent
8901 Woodbine Ave, unit 225
L3R 9Y4, Canada
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